【SMM Steel】Southern Steel proposes RM1bn buyout of Ann Joo's upstream unit

Global metallurgical producer Ferroglobe officially warned on March 31, 2026, that it will be forced to shut down its smelting operations in South Africa if it does not receive electricity tariff relief by April 1. The company, which operates facilities in Polokwane and Mpumalanga, stated that soaring energy costs have made continued production tenable. This potential closure threatens thousands of direct and indirect jobs and follows the broader trend of industrial contraction in South Africa, where only 11 of the nation's original 66 smelters remain operational due to uncompetitive power pricing.

Global scrap metal prices experienced a predominantly upward trend in mid-March 2026, with the most significant increases recorded in Turkey and the United States. In Turkey, HMS 1&2 80:20 scrap prices rose by 3.9% between late February and late March, reaching $388.3 per tonne, the highest level since mid-2024. The price surge is primarily driven by a domestic supply shortage and rising freight rates linked to Middle East instability, forcing electric arc furnace operators to absorb higher costs as high-grade alternatives like Asian billets become increasingly scarce.

The Indian government officially eased procurement rules on March 27, 2026, allowing state-owned enterprises including the Steel Authority of India (SAIL) and Bharat Heavy Electricals (BHEL) to purchase critical industrial equipment from China. This policy shift is intended to accelerate domestic infrastructure projects and modernize aging steel mill facilities that have struggled with technical bottlenecks. While trade tensions remain between the two nations, the decision addresses immediate logistical and technical needs for Indian primary steelmakers aiming for a 295 million tonne annual iron ore production target in 2026.